Annual Return 2023: These are the personal deductions you can make

During the Annual Declaration 2023people have the right to reduce their cumulative income, these are known as personal deductions and they are amounts that can be subtracted from income, which are the basis on which the Income Tax (ISR) rate is applied.

This is done to reduce the ISR payment that taxpayers have to make as part of their annual declaration, so that they can have a favorable balance or increase it.

Let us remember that natural persons must submit their 2023 Annual Declaration from April 1 to 30, while legal entities will do so from May 1 to 31 of this year.

What are the personal deductions in the 2023 Annual Declaration?

This is one of the personal deductions and can be: medical, dental fees and for professional services in psychology and nutrition. These are deductible if they are provided by people with a professional title legally issued and registered by the competent educational authorities.

1. Hospital expenses and medicines included in hospital bills. No receipts from pharmacies.
2. Fees to nurses.
3. Analysis, clinical studies.
4. Purchase or rental of devices for the recovery or rehabilitation of the patient.
5. Prosthesis.
6. Purchase of graduated optical lenses to correct visual effects.

However, 100% of the invoice cannot be deducted if there are other purchases such as flowers, coffee, etc.

• Premiums for medical expenses insurance

The premiums for insurance for medical expenses, complementary or independent of the health services provided by public social security institutions, can be deductible, but in an annual declaration, it must be applied within the type of deduction “insurance premiums for medical expenses”. and not as a medical expense.

Invoices should be reviewed to make sure that the invoiced concept is clear and corresponds to the medical expenses insurance premium that is being contracted. In the “Use of CFDI” field, it must be indicated that they are premiums for medical expenses insurance.

Among the personal deductions are tuition fees in private educational institutions with official study validity. From preschool level to high school or equivalent, and with the following amounts for the deduction:

1. Preschool: 14,200 pesos.
2. Primary: 12,900 pesos.
3. Secondary: 19,900 pesos.
4. Technical professional: 17,100 pesos.
5. High school or its equivalent: 24,500 pesos.

The payment of school transportation is deductible if this expense is included in the tuition. To make education deductions effective, you must have the corresponding proof of payment.

In the case of tuition payments made for the taxpayer can be deducted and, where appropriate, your spouse, common-law spouse and ascendants or descendants in a straight line, provided that they do not receive income that exceeds the value determined by the tax authority.

It may interest you: SAT: Learn about the new requirement to file the annual tax return

Why is the Annual Declaration filed?

The obligated natural persons have until the last day of April to present their annual declaration. Although there are some exceptions, which we have already mentioned in The Truth News.

The objective of declaring is that individuals pay the ISR of the immediately preceding fiscal year. Therefore, in 2023 the information for 2022 will be presented, in accordance with the tax regime of each taxpayer.

Now, we have also seen what are personal deductions that can be done before the Tax Administration Service (SAT) when presenting the 2023 Annual Declaration.

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